How Is the PoW Target Threshold Adjusted Dynamically?

The target threshold is adjusted based on the network's hash rate to maintain a consistent block time. If blocks are being found too quickly, the target is lowered (making it harder).

If they are found too slowly, the target is raised (making it easier). This mechanism, often called a difficulty adjustment algorithm, ensures a predictable rate of new coin issuance and transaction confirmation, regardless of the number of participating miners.